Experience Studies
Experience Studies in Individual Disability
Individual Disability Income Insurance Lapse Experience
A Joint Study Sponsored by LIMRA International and the Society of Actuaries Individual
Disability Insurance Experience Committee.
This report represents the first study of individual disability income (IDI) lapse experience
conducted jointly by LIMRA International and the Society of Actuaries. The study examines lapse activity for years
1999 through 2001. Most participating companies submitted data on a policy year basis for years 1999 and 2000.
Lapse rates for all policy years combined averaged 4.7 percent for noncancelable plans, 10.4 percent for guaranteed
renewable business, and 5.0 percent for all plans combined during 1999 through 2001.